Kerala Emerges as a Leading Market for Electric Vehicles

As per the EVM group, sales of electric vehicles (EVs) have significantly increased compared to 2023.

Kerala became the second-largest market for electric four-wheelers in the first quarter of FY 2024-25, following Maharashtra. Market trends suggest that Kerala’s position might continue to rise, making it India’s leading market for electric vehicles. During this period, Maharashtra sold 3,356 four-wheeler EV units, while Kerala and Karnataka sold 2,803 and 2,779 units, respectively. . 

Vivek Srivatsa, the chief commercial officer of TATA.ev, highlighted Kerala’s significance in the EV sector, praising its infrastructure and forward-thinking population. He also mentioned that Kerala tends to set trends that the rest of the nation follows in a few years. Minister for Industries P Rajeeve agreed with Srivatsa’s statement, emphasizing the innovative spirit of Keralites.

Raman M, the co-founder of chargeMOD, an EV startup based in Kozhikode, stated that the availability of sufficient charging infrastructure and increased purchasing power significantly contribute to the surge in EV sales. “Keralites have far more exposure to innovations and new tech because of their education. Even school students know about EVs.”

According to data from the EVM group, sales of electric vehicles (EVs) in the company’s showroom have significantly increased compared to 2023. Noble Jacob M, vice president of projects at EVM, stated that 853 EV units were sold in 2023. However, by July 2024, sales had already reached 1,286 units.

He says that while four-wheeler sales have made a significant impact, two-wheeler sales are also improving.

“The reason is that the upgrading of two-wheelers, in terms of battery capacity and the range of travel, was done only recently. But with the arrival of e-two-wheelers (e-2Ws) that could travel 100km and return with a single charging, the number of buyers for e-2Ws has increased,” said Noble.

“Adopting a new form of energy has become popular among the people of Kerala, with TATA models being the most popular choice. Describing the changing scenario, Noble said, “EVM started exploring electric vehicles in the middle of 2020. At that time, we only had one electric vehicle brand. Now, four years later, we are selling around 10 different brands in our showrooms”.

He attributes the rise of electric vehicles to organic growth. “It is not pre-planned,” he adds.

Minister Rajeeve emphasized the factors driving the rising adoption of electric vehicles (EVs) in Kerala, attributing it to the state’s strong focus on sustainable and innovative solutions.

“We are committed to promoting the expansion and advancement of the EV industry,” Rajeeve stated.

Raman highlighted another key factor contributing to Kerala’s significant EV market – the absence of a rural-urban divide in the state. Najeem M Illyas, CEO of Twoncraft Technologies, noted, “Unlike many other Indian states where the major cities are more developed, Kerala exhibits a more uniform level of development across urban and rural areas.”

Illyas mentioned that the Kerala government offers various incentives to drive EV adoption.

“Additionally, the state has reduced road tax for EVs by 50%, making them more cost-effective. Furthermore, the state provides a 20% capital subsidy for new EV manufacturing units. This promotes the establishment and growth of EV production facilities within the state,” added Najeem.

Furthermore, the growing number of charging stations in Kerala was highlighted, with Raman from chargeMOD noting, “Presently, we have a network of over 2,300 charging stations.”